NII Up, NPAs Improve
Key Highlights
- Canara Bank’s Q1 FY27 net profit rose 2.2% YoY to ₹4,855.82 crore.
- Net Interest Income (NII) increased 13.4% to ₹10,215.27 crore.
- Gross NPA ratio improved to 1.57%, down 112 basis points YoY.
- Net NPA ratio declined to 0.36%, improving by 27 basis points.
- Interest earned grew 6.3% to ₹32,957.04 crore.
- Provisions for bad loans fell 24.2% to ₹1,399.33 crore.
- Total income increased 4.3% to ₹39,684.26 crore.
Canara Bank reported a steady financial performance for the first quarter of FY27, with its standalone net profit rising 2.2% year-on-year to ₹4,855.82 crore for the quarter ended June 30, 2026. The growth was supported by a healthy increase in net interest income and continued improvement in the bank’s asset quality.
The bank’s Net Interest Income (NII), a key measure of core lending performance, climbed 13.4% to ₹10,215.27 crore, compared with ₹9,008.76 crore in the corresponding quarter last year. Interest earned during the quarter increased 6.3% to ₹32,957.04 crore, while interest expenses rose at a slower pace of 3.4% to ₹22,741.77 crore.
Total income for the quarter grew 4.3% to ₹39,684.26 crore. However, other income declined 4.7% to ₹6,727.22 crore, reflecting lower non-interest earnings.
Operating expenses increased 10.5% to ₹8,306.63 crore, resulting in a modest 1% rise in operating profit before provisions and contingencies to ₹8,635.86 crore. The bank’s operating margin narrowed slightly to 21.76% from 22.47% a year earlier.
On the asset quality front, Canara Bank continued to strengthen its balance sheet. The Gross Non-Performing Asset (GNPA) ratio improved significantly to 1.57%, down 112 basis points from the previous year. The Net NPA ratio also declined to 0.36%, indicating better recovery and lower stressed assets.
The bank also reduced provisions for bad loans, with NPA-related provisions falling 24.2% to ₹1,399.33 crore, helping support profitability during the quarter.
The results reflect Canara Bank’s continued focus on improving asset quality, maintaining lending growth, and strengthening its overall financial performance despite a rise in operating costs.
